Although the taxe d'habitation has been abolished for principal homes, it remains in place for second homes.
Councils in defined areas of housing stress are permitted to impose a surtax, which can range from 20% to 60%, although under previous rules only around 25% elected to do so.
The councils concerned are those in an area of housing stress with a population greater than 50,000, amounting to 28 agglomerations, comprising 1,136 communes.
The primary aim of the law is to combat the number of properties that are being let out for tourist accommodation.
Last year the French parliament passed a law lowering the threshold of councils entitled to impose the tax to those in areas of housing stress with a population below 50,000.
The list of the additional 2,600 councils now granted the right to impose the surtax from 2024 was published last week.
The overwhelming majority of councils are in coastal or mountain areas, as shown on the graphic below. Those councils coloured blue are already permitted to impose the tax, whilst those now granted the power are coloured green.
The full list of councils can be found at majoration de taxe d’habitation.
It remains unclear how many of the councils will choose to impose the surtax or the rate they will impose. They have until October to make their decision for next year.
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